[MUSIC] Welcome back to our lecture on shipment operations.
Upon completion of this lesson, learners should be able to discuss the purpose of weighing and manifesting. Explain how transportation modes are selected.
Discuss the types of shipment documentation.
List types of equipment and techniques used in loading outbound vehicles, and identify the key metrics used to measure performance.
Weighing shipments and producing shipment documents may seem to be relatively mundane. However, it is an essential component of fulfillment. In many cases, warehouse associates may not need to weigh products manually. And shipment documentation may be generated automatically, based on the computer calculated total weights of the product, and based on what has been confirmed as being picked by the picking personnel.
One purpose of weighing the outbound order components is to serve as a validation to help prevent errors. When the shipping personnel weigh the components of an order or a shipment and inputs it into the computer, the system will compare what the expected weight is versus what has been entered.
This is very similar to what we as individuals may experience if we’re using self checkout lines at grocery stores. Once we scan a good and put it on the scale to be bagged, the computer will check what it expected the weight to be on the scale, based on what was just scanned, to what it actually sees on the scale. If there is a discrepancy, you can’t move forward to check out of the grocery store. Like wise in a ware housing environment, if there is an invariance between what the shipment weight on the scales is versus what was expected to be there, personnel or directed to resolve the discrepancy before any shipment documentation is printed.
The shipment function also includes some operations level elements of transportation, including mode selection. In may cases the transportation mode is standard and no decision has to be made. However, in other cases, the shipping department may be tasked with determining the best transportation mode for a given shipment, based on required delivery date, which modes can get the shipment to the destination in the required time. Freight cost, what was budgeted or specified as the cost by the department or the customer, versus what is the freight cost for each mode that’s available, and product package considerations. Based on the sizing and packaging considerations, many modes are not going to be a fit for a given shipment. For example, 55 gallon drums of oil aren’t likely to be a good fit for a parcel carrier company.
One of the standard shipment documents is a packing list. A packing list breaks down the shipment into unit sizes, drums, pallets, boxes, bags, etc. It disaggregates the description provided in the commercial invoice, and lists which specific units of goods are physically packed together. The Bill of Lading or an Airway bill is another shipment documentation, and serves as the primary transportation document establishing ownership of goods, and is used as evidence in case of any disputes. The bill of lading lists the names and addresses of the buyer and seller. Incoterms used for the terms of trade. The terms of contract for transportation, the name of the carrier, and identifies the shipment by other information such as shipment number, etc. The three main functions of the bill of lading are, to serve as a contract confirming the shipment has been carried out by the carrier on behalf of the shipper. Serve as a receipt by the carrier stating the goods have been received from the shipper, and serve as a certificate of the title of goods.
Freight bills or freight invoices are different from bills of lading, in that they do not typically serve as the key piece of evidence in a dispute regarding freight ownership. While freight bills should match up closely to their bill of lading counterparts, they can also include additional charges such as accessorial charges, special services, etc.
Information or stipulations that serve to clarify the information on the bill of lading documents, etc.
In effect, these rate bills are similar to other invoices, for professional services your business might collect.
Shipment vehicle loading is accomplished through the use of a number of facility attributes, in manual and mechanized or automated techniques. Including raised docks, raised shipping docks are typically used in warehouses which are set at the height of the vehicles that are coming in. Trucks back into the dock, and pallet trucks or low profile forklifts enter the vehicle for loading. Vehicles tend to differ in height, so a dock leveler will be required to take up the differences in height between the dock and the vehicle. Additionally, a dock shelter or seal will probably be used to shield the warehouse from wind and rain.
In situations where there is no raised dock, mobile ramps can be used.
Loading and unloading conveyors such as extending conveyors, are used when containers need to be manually loaded or unloaded from the trailer. There are many designs, and the general style depends on whether the container is being loaded to a raised dock or to a level dock. In the former case, gravity roller conveyors are often used.
Rapid loading systems, rapid loading systems are aimed at dramatically reducing the time needed to load or unload a vehicle, minimizing vehicle turnaround time. Most of these systems are based on fitting the vehicles with a roller conveyor. A typical system might consist of a bed of roller conveyors on the vehicle, and a similar bed on the loading dock. A vehicle load is preassembled on the bed of conveyors on the loading dock. Then a vehicle arrives, backs into position, and the complete load transfers on the conveyor from dock to vehicle. The actual load transfer time can take as little as 90 seconds. However, time is added to these 90 seconds for opening the vehicle, removing any empty pallets, closing doors, and sealing the vehicle.
For shipping operations, some key performance metrics include, the cost of shipping per order.
Productivity may be measured in terms of the number of shipping labor hours
required to handle each shipment. Utilization may be measured in terms of how frequently the individual shipping docks are used. Quality maybe measured by as a percentage of the perfectly shipped orders without customer complaints.
Labor efficiency may be measured in terms of the cases or pallets loaded per labor hour. The overall efficiency may be measured in terms of truck turn around time in loading and getting the truck out the door. And a broader cycle time measure may be expressed in terms of the shipping time per order from the time picking begins, to the physical movement of the truck off of the facility. For this lesson, in addition to watching the lesson, you will also want to watch the following videos. The links to these videos can be found at the lower right hand side of this lesson shown as Links. The videos are End of Line Shipping and Manifest Systems, Scan, Weigh, Dimension, Verify.
Our Warehouse, the Packaging, and Shipping Process. In this lesson, we discussed the purpose of weighing and manifesting, explained how transportation modes are selected, listed types of equipment and techniques used in loading outbound vehicles, and identified the key metrics used to measure performance. Thank you for watching, and we’ll see you on the next lesson. [MUSIC]
[MUSIC] Welcome back to our lecture on shipment operations.